1.  Financial Statements:
 
 Financial Statements are prepared under historical cost convention and
 as a going concern, on accrual basis and in accordance with the
 generally accepted accounting principles and relevant requirements of
 the Companies Act, 1956.
 
 2.  Revenue Recognition:
 
 Revenue from Sales is recognized on the basis of Invoice raised based
 on dispatches of products to its customers.
 
 3.  Expenses:
 
 It is the policy of the Company to provide for all expenses on accrual
 basis. Similarly, Provisions are made for all known losses and
 liabilities.
 
 4.  Fixed Assets:
 
 i) Tangible Assets: Fixed assets are stated at Acquisition cost less
 depreciation. Cost includes the original cost of acquisition and
 subsequent improvements thereto-including taxes, duties, freight and
 other identical expenses relating to acquisition and installation of
 the assets. Fixed Assets are capitalized on the date on which they are
 ready to put to use. Those Fixed Assets that are under construction /
 Installation are shown under Capital Work In Progress. Expenditure for
 maintenance and repairs are charged to Profit & Loss Account.
 
 ii) During the year company has not revalued any of its fixed assets.
 However revaluation of land made in the previous year has been reversed
 in the current year.
 
 iii) Depreciation: The Company has the policy to provide depreciation
 on Tangible Assets on pro-rata basis from the date, the asset is put to
 use under Written Down Value Method (WDV) at the rates specified in
 Schedule XIV of the Companies Act, 1956.
 
 Intangible Assets: No provision has been created for the write off of
 Goodwill arising out of Amalgamation during the period.
 
 Individual assets costing less than Rs. 5000/- each are fully
 depreciated in the year of purchase.
 
 iv) Impairment of Assets: Consequent to the Accounting Standard 28 on
 Impairment of Assets, the Company assesses at each Balance Sheet date
 whether there is any indication of impairment of assets and the effect
 of such impairment is considered in the books.
 
 5.  Investments: Investments held on the Balance Sheet date are valued
 at cost and at the rates reported in previous years. The Company has
 the policy to write off Permanent Diminution in the value of
 Investments to Revenue. However, the Company has not ascertained the
 value of Investments as at the Balance Sheet date and hence no
 provision has been made for the same.
 
 6.  Inventory:
 
 The Company has valued Stock on Balance Sheet date at Cost or Net
 Realizable Value, whichever is lower. However, Consumables and Stores
 supplies are charged off to consumption at the time of purchase.  They
 are not carried in the books of inventories since their value is npjb,
 significant Considering tax allowances and exemptions.  
 
 7.  Taxes on Income:
 
 Current Tax: Income taxes are computed using the tax effect accounting
 method, where taxes are accrued in the same period the related revenue
 and expenses arise. A provision is made for income tax annually, based
 on the tax liability computed after considering tax allowances and
 exemptions.
 
 Deferred Tax: The differences that result between the profit offered
 for income tax and the profit as per the financial statements are
 identified, and thereafter a deferred tax asset or liability is
 recorded for timing differences, namely the differences that originate
 in one accounting period and get reversed in another, based on the tax
 effect of the aggregate amount being considered. The tax effect is
 calculated on the accumulated timing differences at the end of an
 accounting period based on prevailing enacted or substantively enacted
 regulations. Deferred tax assets are recognized only if there is
 reasonable certainty that they will be realized and are reviewed for
 the appropriateness of their respective carrying values at each balance
 sheet date.
 
 9.  Director''s Remuneration:
 
 The Company has paid Rs. 6280000/- towards Remuneration of Directors
 during the period.  Further, the Company has not computed net profits
 under Section 349 of the Companies Act, 1956 for the purpose of
 directors remuneration, since no commission is payable to the
 directors.
 
 10.  Retirement Benefits:
 
 a.  Provident Fund: Contribution to Provident Fund has been charged off
 to Profit & Loss Account.
 
 b.  Gratuity and Leave Encashment: The Company does not have any
 Gratuity and Leave Encashment Policy and hence no provision has been
 made in the books of account.
 
 11.  Capital Commitments:
 
 Estimated amount of contracts to be executed on capital not provided
 for (net of advances) - NIL
 
 12.  Contingent Assets and Liabilities: There is no Contingent Asset or
 Liability for or against the Company not acknowledge as debt during the
 period.
 
 13.  Balances appearing under Secured Loans, Unsecured Loans, Sundry
 Debtors, Sundry Creditors, Loans and Advances are subject to
 confirmation and / or reconciliation, if any 
 
 14.  Quantitative Details:
 
 Quantitative details of the principal items of goods traded (Clause
 28(a))
 
 15.  Foreign Currency Transactions:
 
 The Company has no other Foreign Currency Transactions during the
 period. Since, the Company has no Foreign Exchange Income or
 Expenditure, disclosures required under Schedule VI of the Companies
 Act, 1956 is not applicable.
 
 16.  EPS:
 
 In determining Earnings Per Share, the Company considers the net profit
 after tax and includes post-tax effect of extra-ordinary items. The
 number of share used in computing Earnings per share is Weighted
 Average Number of Equity Shares outstanding during the period.
 
 17.  Deferred Tax Assets/Liabilities: